I will be interested to see if anyone else has used this method. I am in the process of converting to Aperture 3, with a RAM upgrade to my MacBookPro, so I will check when that is finished. It works but I have not used it enough to see how much trouble it is going to be.
I recently found a free program at /editor/ that will do the conversions. Photoshop Elements will but I had problems reimporting the image back into iPhoto. The one problem I have had is that a photo of a black and white negative comes out as a negative, Duh, and iPhoto will not convert them to positives like a B&W print. So far, this method is quite fast and seems to do at least as good a job as the scanner. I recently bought a Sony A55 with 18-250 lens so I have to see whether that combination, and the Raynox, will work. I have to use a Raynox 150 closeup attachment to focus that close with the Panasonic FZ50 I have been using. I finally settled on buying a small light table and masking off an area the size of a 35 mm slide or other negative I want to copy and then copying the slide or negative with my digital camera held on a tripod over the light table. I have also wrestled with this problem and have tried my Epson flatbed which worked OK but was very slow.